Rays, Inc. The following transactions were completed by Rays, Inc. during February of the current year. Rays uses a perpetual inventory system. February 1. The following assets were received from Nick Anderson: cash, $13,100; accounts receivable, $3,000, supplies, $1,400, and office equipment, $12,500 in exchange for common stock 1. Paid three months' rent on a lease rental contract, $4,800. 2. Paid the premiums on property and casualty insurance policies, $1,800. 3. Purchased merchandise on account from Beeks Co. $4,000, terms FOB shipping point, 2/10. n/30, with prepaid freight of $120 added to the invoice 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $5,000. 5. Purchased additional office equipment on account from Hernandez Co., $2,000. 5. Purchased merchandise on account from Adames Co., $8,500, terms FOB destination, 1/10,n/30 6. Received cash from clients on account, $1,800. 10. Paid cash for a newspaper 6. Sold merchandise on account to Ji-Man Choi Co., list price $4,000, trade discount 30%, terms 2/10,n/30. The cost of goods sold was $1,125. 8. Purchased office supplies for cash $150. 10. Returned merchandise purchased on February 5 from Adames Co., with an invoice amount of $1,300. 12. Paid Hernandez Co. for part of the debt incurred on February 5, $1,200. 12. Recorded services provided on account for the period February 1-12, $4,200. 13. Paid Beeks Co on account for purchase of February 3 14. Purchased merchandise for cash, $10,500 14. Paid part-time receptionist for two weeks' salary, $750. 15. Paid Adames Co. on account for purchase of February 5, less return of February 10 16. Received cash on account from sale of February 6 to Ji-Man Choi Co 17. Recorded cash from cash clients for fees earned during the period February 1-16, $6,250 18. Paid cash for supplies, $800. 19. Sold merchandise on MasterCard credit cards, $2,450. The cost of goods sold was $980 20. Recorded services provided on account for the period February 13-20, $2,100 22. Sold merchandise for cash to Wendle Co., $3,480. The cost of goods sold was $1,400 24. Sold merchandise on account to Lowe Co., $4,350. The cost of goods sold was $1,750. 24. Recorded cash from cash clients for fees earned for the period February 17-24. $3,850. 25. Refunded Wendle Co $1,480 for returned merchandise from sale of February 22. The cost of the returned merchandise was $600. 26. Received cash from clients on account, $5,600. 27. Paid part-time receptionist for two weeks' salary, $750. 28. Paid telephone bill for February, $130. 28. Paid electricity bill for February, $200. 28. Recorded cash from cash clients for fees earned for the period February 25-30, $3,050. 28. Recorded services provided on account for the remainder of February, $1,500. 28. Paid a service processing fee of $140 for MasterCard sales. Adjusting Entries a. Insurance expired during February is $300. b. Supplies on hand on February 30 are $1,350. c. Depreciation of office equipment for February is $700. d. Accrued receptionist salary on February 30 is $120. e. Rent expired during February is $1,600. f. Unearned fees on February 30 are $2,500. Required: 1. Journalize the transactions for the month of February 2. Post the journal entries to the general ledger using T-accounts. 3. Prepare a trial balance as of February 28. 4. Prepare all necessary adjusting journal entries and post the entries to the appropriate T- accounts 5. Prepare an adjusted trial balance as of February 28. 6. Prepare an Income Statement and Statement of Stockholders' Equity for the month of February. Also prepare a Balance Sheet as of February 28 7. Prepare all closing entries for the temporary accounts and post the entries to the 8. Prepare a post-closing trial balance as of February 28 CHART OF ACCOUNTS Cash Accounts Receivable Office Supplies Inventory Prepaid Rent Prepaid Insurance Office Equipment Accumulated Depreciation Accounts Payable Salaries Payable Unearned Fees Common Stock Retained Earnings Sales Fees Earned Cost of Goods Sold Credit Card Fees Expense Depreciation Expense Insurance Expense Rent Expense Salaries Expense Supplies Expense Utilities Expense Rays, Inc. The following transactions were completed by Rays, Inc. during February of the current year. Rays uses a perpetual inventory system. February 1. The following assets were received from Nick Anderson: cash, $13,100; accounts receivable, $3,000, supplies, $1,400, and office equipment, $12,500 in exchange for common stock 1. Paid three months' rent on a lease rental contract, $4,800. 2. Paid the premiums on property and casualty insurance policies, $1,800. 3. Purchased merchandise on account from Beeks Co. $4,000, terms FOB shipping point, 2/10. n/30, with prepaid freight of $120 added to the invoice 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $5,000. 5. Purchased additional office equipment on account from Hernandez Co., $2,000. 5. Purchased merchandise on account from Adames Co., $8,500, terms FOB destination, 1/10,n/30 6. Received cash from clients on account, $1,800. 10. Paid cash for a newspaper 6. Sold merchandise on account to Ji-Man Choi Co., list price $4,000, trade discount 30%, terms 2/10,n/30. The cost of goods sold was $1,125. 8. Purchased office supplies for cash $150. 10. Returned merchandise purchased on February 5 from Adames Co., with an invoice amount of $1,300. 12. Paid Hernandez Co. for part of the debt incurred on February 5, $1,200. 12. Recorded services provided on account for the period February 1-12, $4,200. 13. Paid Beeks Co on account for purchase of February 3 14. Purchased merchandise for cash, $10,500 14. Paid part-time receptionist for two weeks' salary, $750. 15. Paid Adames Co. on account for purchase of February 5, less return of February 10 16. Received cash on account from sale of February 6 to Ji-Man Choi Co 17. Recorded cash from cash clients for fees earned during the period February 1-16, $6,250 18. Paid cash for supplies, $800. 19. Sold merchandise on MasterCard credit cards, $2,450. The cost of goods sold was $980 20. Recorded services provided on account for the period February 13-20, $2,100 22. Sold merchandise for cash to Wendle Co., $3,480. The cost of goods sold was $1,400 24. Sold merchandise on account to Lowe Co., $4,350. The cost of goods sold was $1,750. 24. Recorded cash from cash clients for fees earned for the period February 17-24. $3,850. 25. Refunded Wendle Co $1,480 for returned merchandise from sale of February 22. The cost of the returned merchandise was $600. 26. Received cash from clients on account, $5,600. 27. Paid part-time receptionist for two weeks' salary, $750. 28. Paid telephone bill for February, $130. 28. Paid electricity bill for February, $200. 28. Recorded cash from cash clients for fees earned for the period February 25-30, $3,050. 28. Recorded services provided on account for the remainder of February, $1,500. 28. Paid a service processing fee of $140 for MasterCard sales. Adjusting Entries a. Insurance expired during February is $300. b. Supplies on hand on February 30 are $1,350. c. Depreciation of office equipment for February is $700. d. Accrued receptionist salary on February 30 is $120. e. Rent expired during February is $1,600. f. Unearned fees on February 30 are $2,500. Required: 1. Journalize the transactions for the month of February 2. Post the journal entries to the general ledger using T-accounts. 3. Prepare a trial balance as of February 28. 4. Prepare all necessary adjusting journal entries and post the entries to the appropriate T- accounts 5. Prepare an adjusted trial balance as of February 28. 6. Prepare an Income Statement and Statement of Stockholders' Equity for the month of February. Also prepare a Balance Sheet as of February 28 7. Prepare all closing entries for the temporary accounts and post the entries to the 8. Prepare a post-closing trial balance as of February 28 CHART OF ACCOUNTS Cash Accounts Receivable Office Supplies Inventory Prepaid Rent Prepaid Insurance Office Equipment Accumulated Depreciation Accounts Payable Salaries Payable Unearned Fees Common Stock Retained Earnings Sales Fees Earned Cost of Goods Sold Credit Card Fees Expense Depreciation Expense Insurance Expense Rent Expense Salaries Expense Supplies Expense Utilities Expense